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Hong Kong Market gains 0.94%

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The Hong Kong share market finished higher on Friday, 16 August 2019, as bargain hunting bolstered by hopes that the Chinese government will dip into its coffers to provide financial stimulus to further boost consumption and shore up falling growth amid the trade war. At closing bell, the Hang Seng Index advanced 0.94%, or 238.76 points, to 25,734.22. The Hang Seng China Enterprises Index rose 0.61%, or 60.89 points, to 9,964.30. The gauge fell 0.8% during the week, the fourth week of declines, weighed down by lacklustre corporate earnings and the impact of escalating protests that earlier brought the city's airport to a standstill for two consecutive days.

Blue chips were mixed. HSBC (00005) dipped 0.5% to HK$56.5. HKEX (00388) jumped 2.9% to HK$245. Tencent (00700) slipped 1.2% to HK$326.4. China Mobile (00941) nudged up 0.1% to HK$66.05. AIA (01299) rose 1.6% to HK$76.

Shares of consumer linked companies gained on hopes of China's government stimulus measures after official retail sales earlier in the week were weaker-than-expected. Traders are optimistic about the consumer market in mainland China, because they expect the government is going to use fiscal policies to stimulate the economy. Consumer market is the main indicator of the economy.

The government is likely to further reduce tax in the second half of the year. China's state planner said on Friday it will roll out a plan to boost disposable income this year and in 2020 to spur consumption as the economy slows, but it gave few details. Hong Kong-listed consumer stocks like China Mengnui Dairy and apparel company Shenzhou International Group Holdings followed the trend, rising 3.9% and 4.8%, respectively.

Property stocks advanced as investors picked out bargains from one of the worst-performing industry groups on the Hang Seng Index. Sun Hung Kai Properties rose 3.1%, Link Real Estate Investment gained 2.4%, and Henderson Land Investment added 2.3%. New World Development (00017) soared 6.3% to HK$10.42. Hang Lung Properties (00101) added 0.8% to HK$17.66. CK Asset (01113) gained 4.1% to HK$53.6.

Pharmaceutical counters were higher ahead of earnings reports. CSPC Pharmaceutical (01093) shot up 4% to HK$12.44. Sino Biopharmaceutical (01177) gained 4% to HK$9.42. WuXi AppTec (02359) jumped 4.9% to HK$76. China Resources Pharmaceutical (03320) shot up 3.9% to HK$7.74. WuXi Biologics (02269) added 1.1% to HK$79.9. 3SBio Inc. (01530) put on 2.9% to HK$12.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, August 16 2019. 16:18 IST
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